Generally speaking, in Ohio, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors when leaving the company. Such agreements are also known by the term "non-compete clauses". Compensation might be paid for employees who sign the covenant, or at times the employment might be conditioned upon such an agreement.
When are Covenants not to Compete Unenforceable?
Knowing in advance whether a judge will enforce an employee's non-compete clause can be difficult. While the employer?s interests are significant, Ohio courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Wyoming that is unreasonably broad.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Finally, the employer needs to have an acceptable business purpose which justifies their motives in requiring their employee to sign a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you might want to hire a Wyoming, Ohio attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or might even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.